Energy consumption has become increasingly important in today's society. An electrical grid represents an interconnected power network, which can be used to deliver electricity to consumers. Activities for the electric grid can involve electricity generation, electric power transmission, and electricity distribution. A transmission network has the ability to move power across distances until it reaches its intended customer, which may be a company that owns a local distribution network. After arrival at a substation, power can be stepped down in voltage (from a transmission level voltage to a distribution level voltage). The power can then exit the substation and subsequently enter into distribution pathways. Thereafter, power can be delivered to a service location, where the power is stepped down again from the distribution voltage to the required service voltages.
Ideally, all of these activities are conducted in an efficient manner. However, in practical terms, energy waste occurs due to the prevalence of reactive power. The challenge lies in successfully coordinating these power management activities in a manner that minimizes/eliminates potential inefficiencies. Thus, the ability to properly manage energy resources provides a significant challenge to electric grid operators, component manufacturers, service providers, and power system administrators alike.